This could mean that during the next decade, ultra-fast wireless broadband and many more digital channels could become available as radio spectrum is freed during the digital switchover. The regulator has said that the market will decide how the spectrum is used with an open auction.
The BBC, Channel 4 and ITV had pressed for ring-fenced space for high definition TV over Freeview.
Ofcom chief executive Ed Richards said the decision to opt for a "market-led approach" was "one of the most important decisions we have ever made".
The regulator has packaged the available spectrum into key uses:
*National digital terrestrial TV in high or standard definition
*Cognitive radio - a new wireless technology which can deliver broadband
*High-speed mobile broadband and mobile TV
*Local television - 25 new local TV stations across the UK
Ofcom said HD television remained a "premium" service. HD For All has now said it supports Ofcom's position and has agreed to deliver HD on Freeview by 2012.
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